Indonesia promotes circular economy to mitigate plastic waste crisis

Indonesia, the world’s second biggest waste producer, adopts a circular economy approach to reduce waste and continue to grow sustainably, which will benefit the environment and create economic opportunities. This approach requires a shift from the use and throw mentality, to one where resources are re-used for as long as possible, through sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products.

Plastic waste found from a beach.

A circular economy is an alternative to a traditional linear economy (take, make, waste). It seeks to reduce waste, recovers resources at the end of a product’s life, and channels them back into production, thus significantly reducing pressure on the environment.

Customs inspection of containers containing waste from abroad at Batu Ampar Port, Batam. Photo credit: Directorate General of Customs and Excise of Indonesia

Edward Nixon Pakpahan, head, sub-directorate of infrastructure and services, Ministry of Environment and Forestry, said Indonesia hopes to use the circular economy approach to reduce waste by 18 to 52 percent by 2030. He predicted by 2030, the circular economy has the potential to generate an additional IDR 593 trillion to IDR 638 trillion for the GDP, 4.4 million new jobs and increase household savings by nine percent.

Plastic waste in front of houses.

Saut Marpaung, chairperson, Indonesian Waste Entrepreneurs Association, said based on historical trend, waste is projected to increase every year because there is more public consumption.  He said in order to overcome this problem, all stakeholders from government, private sector and citizens, must be on the same page and work toward a common goal.

Mountains of waste.

In an interview October 23 with Maritime Fairtrade, Tommy Tjiptadjaja, advocacy group Greenhope’s co-founder and CEO, said the plastic waste problem is a systemic problem in Indonesia, and the circular economy approach has to be customized to suit Indonesia’s local conditions, like local culture, socio-economic level, waste handling infrastructure, geography and climate complexity. He added for circular economy to work, Indonesia must be using biodegradable plastics, adequate infrastructure like sorting and waste processing facilities, and more importantly, the people’s mindset and behavior must align with circular economy.

Ignatius Warsito, director general, Chemical, Pharmaceutical and Textile Industries looks at fuel made from waste. Photo credit: Ministry of Industry

The Ministry of Industry wants the petrochemical industry to be more globally competitive by adopting a circular economy approach, for example more use of renewable energy. Ignatius Warsito, director general, Chemical, Pharmaceutical and Textile Industries, said if successfully implemented, this industry showed the most potential for energy savings and efficiency as it is such an energy-intensive industry. 

Ignatius Warsito being shown waste used to produce fuel. Photo credit: Ministry of Industry

Fajar Budiono, secretary general, Indonesian Olefin Aromatic and Plastic Industry Association, added the government has to give incentives to wean companies off a dependence on raw materials and 

All photos credit Iqbal Ramdhani except as stated.

Deadly cost of corruption

Corruption is a pervasive disease around the globe, infecting various sectors and causing significant harm to the society. Among those

The best maritime news and insights delivered to you.

subscribe maritime fairtrade

Here's what you can expect from us:

  • Event offers and discounts
  • News & key insights of the maritime industry
  • Expert analysis and opinions on corruption and more